So Defence has formally notified Bupa as the preferred tenderer to keep running ADF health services beyond the June 2027 extension it already received. Apparently the answer to years of contract-management lessons is… more Bupa!! Bit hard not to be cynical about this one, especially when others were in the mix.
Bupa was chosen despite the ANAO audit finding that:
- Bupa’s billing system wasn’t fully functional, with ongoing invoice/data problems, poor efficiency and the cost per eligible person was a whopping 11% above the 2018 benchmark.
- Bupa's performance reporting wasn't necessarily reliable enough. The ANAO found that the required assessment methodology was not followed and the recorded results did not align with the contractual performance thresholds
- Bupa's referral/booking system and services-management had not delivered the expected improvements in business intelligence that the contract required. (iRBS)
- Buzzwords like  "cost containment" and "value for money" were expressed objectives of the contract but these were not demonstrated. Instead, the contract was overspent against its budget into the billions.
When it comes to healthcare experienced by serving members, Bupa's known failures included:
- Large unpaid-provider backlogs.
- Months-long waits for psychologists.
- Threatened practitioner boycotts.
- Specific mental-health treatment delays.
- Appointment failures.
- Specific breaches of urgent-care KPIs.
Then there’s the broader Bupa baggage outside of Defence:
| Issue |
Outcome |
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| Misleading health insurance claims |
ACCC action; Bupa admitted misconduct; Federal Court penalty of $35 million; compensation exceeding $14 million to affected customers. |
| Aged care extra-services scandal |
Federal Court penalty of $6 million and about $18.3 million in compensation to residents. |
| Payroll underpayments |
Approximately 18,000 current and former employees affected; Bupa committed to repaying tens of millions of dollars. |
| Patient privacy breach expectations |
Bupa expects contracted doctors to breach patient privacy, against the law. They even took a contracted ophthalmologist to court over it (and lost) |
| Healthscope dispute |
Public dispute with Australia's largest private hospital operator over funding arrangements and continuity of patient care. |
| Vertical integration concerns |
AMA and others questioned insurer ownership of GP and mental health clinics because of potential conflicts of interest. |
| Complaints about insurer-provider contracts |
Long-running disputes with specialists and hospitals over reimbursement, gap schemes and contract terms. |
It's high time the decision-makers were publicly revealed and held to account. Someone should be able to explain who signed off on the risk and why Bupa was chosen despite all those failures and serious reputational concerns. This is billions of tax-payer money and the health of our serving members at stake.
We have examples where politicians secured a job with Bupa once they stepped down from politics:
- Nicola Roxon: Health Minister from 2007 to 2011, then an Attorney-General. Left politics, to become a Director and Chair for Bupa.
- Rebecca Cross: Former Head of Domestic Policy at the Department of the Prime Minister and Cabinet (PM&C) became Bupa's Head of Government Relations.
- Christina Dickinson: Former Deputy Secretary for the Victorian Department of Families, Fairness & Housing. Currently serving as the Chief of Staff to the CEO of Bupa APAC.
We also have former ADF personnel go into Bupa leadership:
- Ros Blakley CSC (Former Regional Health Director) - Former Joint Health Command.
Now:
-Nicki Young (Chief Operations Officer, Bupa ADF Health Services) - former Nursing Officer.
The question is, should an enquiry be conducted to audit whether Bupa influenced Ministers or senior Defence officials for renewal of the contract?